GlaxoSmithKline (GSK) and NanoBio Corporation have announced an exclusive licensing agreement in the US and Canada for a novel advanced treatment for cold sores.

The over-the-counter (OTC) compound NB-001 is being developed by NanoBio, to provide significant antimicrobial activity against herpes labialis, the virus that causes cold sores.

NanoBio CEO and founder James Baker said that this partnership with GSK will enable the development and commercialisation of NB-001 to its fullest potential.

“This partnership validates the promise of our proprietary platform technology, and its potential use in a wide range of dermatological and anti-infective applications,” Baker said.

Under the agreement, NanoBio will receive an upfront payment of $14.5m, and will also be eligible to receive additional milestone payments of up to $40m plus single digit royalties on future sales.

NanoBio has completed two Phase II clinical trials of NB-001, both of which demonstrated good efficacy and safety profile and the company is planning to enter Phase III testing shortly.